Budget Conference Committee Completes Work On 2007-08 Spending Plan

323 language specialists among the 11,000 discharged to date

( SACRAMENTO ) – The Budget Conference Committee concluded work today on a $140 billion budget that is balanced and contains a $2.1 billion reserve. This budget not only protects the state’s most vulnerable citizens but invests in preventative programs that will save the state money in future years. It contains no new taxes and no new social programs.

“After six months of hearings and collaboration, we’ve completed the budget committee process and have a balanced, fair and responsible budget,” said Assemblyman John Laird (D-Santa Cruz), chair of the Budget Conference Committee. “This balanced budget restores draconian cuts and preserves Democratic values while also giving Republicans key reasons to be pleased, such as a reserve in line with the Governor’s proposal and no new taxes, as well as full funding for local governments, Prop. 42 transportation, and last year’s public education equalization agreement.”

“Today, we’ve acted to provide a legislative budget prior to the constitutional deadline of July 1^st,” said Senator Denise Ducheny (D-San Diego), chair of the Senate Budget Committee. “We are sure that this budget would receive a majority on the floor, and are hopeful that once it is reviewed by our colleagues, this ‘workload, no frills’ budget will receive the necessary two-thirds vote. California ’s failure to manage its corrections system has resulted in a budget which is out of control, and out of our control.  Health care costs keep increasing.  This is why the few investments that we’ve made are committed to prevention.  Not only does this budget maintain our commitment to the less fortunate, seniors, children of the working poor, our education system, and foster children, it seeks to make strategic investments to avoid expenditures in our corrections system in the future.”

Key Highlights of the 2007-08 Budget

Passed by the Conference Committee

Overview:

• Balanced budget with $2.1 billion reserve, the same as the governor’s level
• No new taxes.
• $2.5 billion in debt payoff of Economic Recovery Bonds
• Appropriations from nearly all of new bond funds in the budget bill
• No new social programs.
• Fully funding growth and COLA in Prop. 98
• Full funding for last year’s K-12 equalization deal.
• Full funding for local governments, including mandate payments.
• Near full funding for local law enforcement programs (more than $500 million total), none of which are state programs.
• Full funding of Prop. 42 transportation

Protecting the state’s most vulnerable populations

• Provides $147.3 million to fully fund the cost of living increases for SSI/SSP recipients.
• Rejects governor’s proposed cuts to CalWORKS, including $324 million in aid to children

Investing in prevention programs

Foster Care Reforms

• 70 percent of people in state prisons have spent time in foster care

• $10 million in general fund money for a 5 percent rate increase for foster family homes and an increase in group home rates beginning Jan. 1, 2008
• $35 million for transitional housing for foster youth. Every year, over 4,000 youth are emancipated from the foster care system without being adopted. Of those:

Ø      65 percent have no place to live

Ø      51 percent are unemployed

Ø      59 percent receive Medi-Cal services and emancipated females are four times as likely to receive welfare as other young females in the state.

• $2 million in general fund to increase the private adoption agency reimbursement rate

Ø      Adoption of children from foster care services saves the state $3,917 for each year the child would have been in foster care. 

Ø      A dollar spent on the adoption of a child from foster care yields about three dollars in benefits.

Ø      Adopted foster youth are 32 percent less likely to be incarcerated and 24 percent less likely to be unemployed.

Juvenile Justice Reforms

·        These reforms are designed to improve the outcomes and treatments of youthful offenders and provide resources to counties while reducing long-term costs to the state.

·        Youthful offenders adjudicated for non-violent, non-serious offenses would remain in local custody rather than be sent to a state facility. When fully implemented in three years, 800 youthful offenders will remain in the county close to their families and communities, rather than in state custody.

·        Offenders released to parole would become responsibilities of the counties effective 60 days after the budget bill is signed.

·        The state will provide $117,000 to the counties for each youth. Based on anticipated county saving, counties should spend $130,000 for the care and custody of each youth. There is also $10 million in competitive grants to develop local capacity to take care of specialized populations, such as those with mental illness or substance abuse problems.

·        Another $100 million would be available through competitive grants for construction of local rehabilitative and custody facility.

Mental Health Care

• $54.9 million for integrated services for the homeless mentally ill adults program used by 34 counties. California taxpayers save $2 for every dollar expended on this program. In addition the program means a:

Ø      56 percent reduction in the number of days hospitalized

Ø      72 percent reduction in the number of days incarcerated

Ø      67 percent reduction in the number of days spent homeless

Ø      The average cost per individual served is $12,000 annually as compared to the $41,000 it costs to keep a person in prison each year.

Other key highlights:

• $160 million for Prop. 36, which provides drug treatment instead of incarceration
• $24.9 million for state meal supplements for free and reduced priced meals. This will increase the state rate from 14 cents to 21 cents. There has not been an overall state rate increase in 15 years. The federal government provides $2.40 per meal.
• Approved funding to accelerate by one year implementation of the state’s bio-monitoring program. Legislation last year by Sen. Perata created the nation’s first statewide program to measure chemical contamination in members of the general public.
• Approved the governor's request for 50 new judgeships in the budget year.

• $8 million in general fund money for the state to respond to a court decision on unclaimed property. The Controller will now notify all property owners before property transfers to the state.